Contact (Pemateri): Kanaidi, SE., M.Si., cSAP HP/wa. 0812 2353 284, +62 878 2298 4716 Telp/Fax : +62 22-4267735 e-mail : kanaidi963@gmail.com atau kanaidi@yahoo.com

1. deeper
IBM India
© Copyright IBM Corporation 2004
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By : Kanaidi, SE., M.Si., cSAP
kanaidi963@gmail.com ..08122353284
Training

2. IBM India
© Copyright IBM Corporation 2004
Contents
e-Procurement
Benefits of e-Procurement
e-Procurement for Public Sector
Case Study

3. IBM India
© Copyright IBM Corporation 2004
e-Procurement
Pengadaan secara elektronik (e-Procurement)
adalah Pengadaan Barang/ Jasa yang
dilaksanakan dengan menggunakan teknologi
informasi dan transaksi elektronik sesuai dgn
ketentuan perundang-undangan.
Layanan Pengadaan Secara Elektronik (LPSE)
adalah unit kerja K/L/D/I yang dibentuk untuk
menyelenggarakan sistem pelayanan Pengadaan
Barang/Jasa secara elektronik.
(Pepres No.4/2015)

4. IBM India
© Copyright IBM Corporation 2004
Istilah-Istilah
4

5. IBM India
© Copyright IBM Corporation 20045
Introduction
 Procurement is a competitive differentiator
WorldCompetition TechnologyExplosion
PressureonPrices ShorterProductLifecycles
MARGINSSQUEEZED
198019902000
Increasedfixedcosts
+Increased
fixedcosts
%
198019902000
NonMaterials
10years
5years3years
• Increase sales by 50%
• Reduce overheads by up to 20%
Profit
Other
Costs
External
Expenditures
45
50
45
47.5
5
7.5
100 100
- 5%
+50%
Revenue
0%

6. IBM India
© Copyright IBM Corporation 20046
Procurement challenges and expectations
Procurement organizations are expected to lower the material cost coupled with
high process efficiencies
Material
costs
Negotiation Centralized procurement
Vendor Leverage
Item standardization
Vendor base rationalization
Prediction
Process
efficiency
Activity costs
Time
Eliminate non value adding
activities

7. IBM India
© Copyright IBM Corporation 20047
Procurement process
The opportunities lie across the procurement process
Pay
Develop
Category
Strategy
Complete
Supplier
Evaluation
Select
Suppliers &
Negotiate
Agreement
Supply
Conduct Spend
Analysis &
Determine
Customer
Requirements
Conduct
Market
Analysis
Low value buying
High value buying
Value No. of Transactions
Centralized
procurement
Item
Standardization
Vendor Base
Rationalization
Vendor
Leverage
Transaction
Costs
Cycle Time
Prediction
Models

8. IBM India
© Copyright IBM Corporation 20048
Procurement process
Multiple options are available at various points
Pay
Develop
Category
Strategy
Complete
Supplier
Evaluation
Select
Suppliers &
Negotiate
Agreement
Supply
Conduct Spend
Analysis &
Determine
Customer
Requirements
Conduct
Market
Analysis
High value buying
Value No. of Transactions
Centralized
procurement
Item
Standardization
Vendor Base
Rationalization
Vendor
Leverage
Prediction
Models
• e-Requisition
• e-Approval
• RFI, RFQ, RFP
• Tenders
• Reverse
Auction
• e-PO
• e-Release
• e-Changes
• e-Confirm
• e-documents:
• ASN
• Ship status
• Receipt
• Supplier web
report card
• e-Invoice
• EFT
• Credit auth.
• Debit auth.
• e-Credit/Debit

9. IBM India
© Copyright IBM Corporation 20049
Procurement process
Multiple options are available at various points
Conduct Spend
Analysis &
Determine
Customer
Requirements
Low value buying
Value No. of Transactions
Centralized
procurement
Transaction
Costs
Prediction
Models
• e-Catalog
• Pricing
• Availability
• Commit
• e-Configure

10. IBM India
© Copyright IBM Corporation 200410
Contents
e-Procurement
Benefits of e-Procurement
e-Procurement for Public Sector
Case Study

11. IBM India
© Copyright IBM Corporation 200411
Reduced Product/Process
Costs
Improved Compliance
Reduced Inventory Costs
1
2
3
4
5
Reduced Maverick
Purchasing
Value Drivers Pain Points Mitigation/Savings Estimates
• Fragmented data
• Unreliable/inaccurate data
• Rampant off-contract spend
(approximately 27% of
indirect spend)
• Long lead times result in
purchase of large safety
stocks
Purchase requisition process-
ing time reduction of 70%-80%;
averaging a week faster
Purchase requisition process-
ing expense reduction up to
73%; price of goods 5%-10%
less on average
Data integrity is improved
through contract compliance,
strengthening a company’s
supplier negotiation leverage
Maverick spending decreases
up to 51%
Inventory expense reduction
between 25% - 50%
Improved Process Efficiency
• Long lead times due
to high manual processing,
1/3 time spent reviewing
manual requisitions
• High transaction costs
• Long supplier negotiations
• Non contract compliance
drives up price
eProcurement benefits

12. IBM India
© Copyright IBM Corporation 200412
Contents
e-Procurement
Benefits of e-Procurement
e-Procurement for Public Sector
Case Study

13. IBM India
© Copyright IBM Corporation 200413
e-Procurement for Public Sector
e-Procurement, a significant opportunity within E-Governance
Government – an attractive case for e-Procurement
Probably the “single largest buyer” of goods and services in a state
Serious initiatives underway from AustralAsia to Europe to USA
Important Value Drivers
 Potential savings – aggregated demand
 Cost reduction – process efficiency
 Compliance
Attractive business models – Public Private Partnership (PPP)
As many as 42 states in the USA, in addition to the Federal Government, will
embark on some form of e-Procurement project by 2004 (Gartner)

14. IBM India
© Copyright IBM Corporation 200414
Challenges
Adhere to EU and WTO rules for
public procurement processes
Ensure transparency and
efficiency for both suppliers and
buyers
Solution
An open, secure and
scalable e-procurement
solution – Electronic Tender
Handling, Information and
Communications (ETHICS)
Case Study – Public Sector
National Procurement Limited,
Copenhagen-Denmark
Solution caters to around 8200 institutions in EU

15. IBM India
© Copyright IBM Corporation 200415
Business
 Doubled productivity with same
staff
 Knowledge transfer among
employees
 Improved vendor satisfaction
 Double digit growth in contract
turnover
 Reduction in administrative
costs by 40-50%
 Increased transaction
transparency and auditing
 Improved decision making via
well defined transparent
evaluation process
Case Study – Public Sector
Benefits
Solution caters to around 8200 institutions in EU
Technical
 An end to end, open standards
based tender solution based on
IBM Lotus Domino
 State of the art security including
PKI Infrastructure
 More user friendly design
questionnaire to help buyer
automate decision making process
 A robust, secure decision support
system, based on Lotus
QuickPlace and Sametime,
enabling teams to meet and
collaborate virtually in an online
voting room and gain access to
important proposal related data
National Procurement Limited,
Copenhagen-Denmark

16. IBM India
© Copyright IBM Corporation 200416
Contents
e-Procurement
Benefits of e-Procurement
e-Procurement for Public Sector
Case Study

17. IBM India
© Copyright IBM Corporation 200417
In 1993, IBM was in midst of a severe financial crisis
Case Study - The IBM Way
Revenue
Op. Income
$69 B
10
$65 B
4
$ 65 B
3
$ 63 B
-4
1990 1991 1992 1993
1990 1991 1992 1993
IBM Cash Flow
1993
5
1
2
-3
IBM Debt

18. IBM India
© Copyright IBM Corporation 200418
IBM adopted a holistic approach to cost reduction which was critical to
its turnaround...
$B
'85 '93 '97
-20
0
20
40
60
80
100
120
Profit
'98
Market Value
Revenue
US$ 9
Billion
Saved
Case Study - The IBM Way

19. IBM India
© Copyright IBM Corporation 200419
The approach encompassed strategic, tactical and operational
initiatives as highlighted...
Strategic
Sourcing
Global
Sourcing
Aggregated
Sourcing
Value
Engineering Tax Chain
Skills
Upgrading
Outsourcing e-Procurement
Supplier
Relations
Management
Strategic
Tactical
Operational
Case Study - The IBM Way

20. IBM India
© Copyright IBM Corporation 200420
Supplier Relations Management (SRM) seeks to map the supplier into
appropriate relationships...
Relative supplier management skills and effort required
Problem solving
Influencing
Negotiation
Team-working
Market analysis
Behaviour
Values
Strategic, complex issues
Influencing the Board agenda
Complex, multi-dimensioned
Cross functional, joint-supplier
Market, competitors, technology
Principled, trust-based
Urgency to prove model works
Operational, simple trade offs
Influence stakeholders
Trading
Limited
Price testing/quotations
Confrontational
Secure best deal available
Competitive
Leverage
Preferred
Supplier
Performance
Partnerships
Strategic
Alliances
Case Study - The IBM Way

21. IBM India
© Copyright IBM Corporation 200421
Effective SRM with appropriate technology support paid rich dividends
for IBM...
Before SRM
High and unmanaged
Constant Problem
Slow
After SRM
Reduced part cost 15-25 %
Eliminated 50% of parts
Reduced cycle time 75%
Reduced design cycle time 35%
Reduced time to market 70%
Part Cost
Design
Cycle Time
Time-to-Market
Case Study - The IBM Way

22. IBM India
© Copyright IBM Corporation 200422
e-Procurement applications facilitate the transformation process and
enable organisations to sustain the benefits…
Sourcing
Fulfillment
Settlement
Internet quoting
Auctions
On-line contracts
Information warehouse
Requisition / ERP
Electronic catalogs
"Buyerless" automation
Skills matching
EDI
EFT
e-Invoices
Authentication / Authorization
Buyers / Requesters Suppliers
Case Study - The IBM Way

23. IBM India
© Copyright IBM Corporation 200423
IBM realized significant benefits from e-Procurement…
Business Metrics
Escapes (By Pass)
Acceptable Business Controls
Client Satisfaction
P.O. Processing Cycle Time
e-Transaction: Invoice
Hands Free
Contract: Cycle Time
Length
Competitive Advantage
Ledger Miscodes
Suppliers Connected via Web
Savings via Web
Supplier Survey Rating
Early 1990's
30%
40-50%
40%
30 Days
??
20%
6-12 months
40 (+) pages
Cost Savings
>30%
0
0
5
Today
<0.5%
+90%
>80%
1 hour
95%
+80%
30 days
6 pages
>3%
5%
27,000
$380M
1
Case Study - The IBM Way

24. IBM India
© Copyright IBM Corporation 200424